Tower Lease Economics

Ready to find out how much the cell tower buyers are willing to pay you for your telecom lease?

The answer may seem simple. It is not. There is a lot of information that goes into evaluating a cell tower lease. The economics of the lease, such as the base rent, frequency of rent payments, the increases in the rent and their frequency, co-location participation, location of the site, traffic and or population surrounding the site, existence of other towers in close proximity, equipment enhancements, such as fiber optics, etc.

All of these factors go into the IRR calculations before the buy-out firms will even make an offer. If there are investors banking the cell tower lease purchases, they will have to agree that the price offered meets their expectations of risk/reward. Are there risks? You bet. These firms get hammered when they have two leases on the same tower and through a buy-out of one carrier of another happens and the leases become redundant, the firm that bought your site loses the site income they purchased from you.

Documents you will need:

Copy of your cell lease, including any additional amendments

Commencement letter

Copies of last 3 payment checks

Copy of last preliminary title report (if you have)

Picture of all equipment (especially fiber cable, if installed)

Now all you have to do is to decide whether you want a formal bidding process, referred to as a RFP(Request for Proposals) or what I refer to is a 'FREE FOR ALL'.

RFP:

We would send out invitations to make offers

Each would contact us for lease information and how to get ahold of you, if you wish.

Each interested firm would contact you for particulars (please keep us informed)

You would negotiate, accept or reject their offers or ask for a 'Best and final Offer'.